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Integrated Dual-Clutch Transmission (DCT) system targets motorcycle and four-wheeled vehicle applications above 500 cc Technology improves fuel economy and enhances the riding experience BorgWarner upgrades from key component supplier to systems solution provider , /PRNewswire/ -- BorgWarner has secured a new DCT program with a Chinese motorcycle customer, with start of production planned for the third quarter of 2027. Under the program, BorgWarner will provide a systems solution that includes dual clutches, hydraulic control modules and clutch control software for two-wheeled motorcycles and four-wheeled vehicles with engine displacement above 500 cc.           

As the motorcycle industry accelerates its shift toward automatic transmissions, DCT technology is increasingly gaining attention in the market. Compared with automated manual transmission (AMT) and continuously variable transmission (CVT) technologies, DCT offers smoother shifting and higher transmission efficiency, making it particularly suitable for larger-displacement performance motorcycles.

"Passenger car transmission technology provides a strong reference point for the evolution of motorcycle automatic transmissions, and we believe automatic transmission technology will continue to gain momentum in the motorcycle market," said Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems. "With our proven DCT expertise and systems integration capabilities, BorgWarner is well positioned to support our Chinese motorcycle customer in bringing its DCT solution to production and advancing automatic transmission technology for motorcycle applications."

As a global leader in DCT technology, BorgWarner has delivered nearly 10 million passenger car DCT units, backed by proven engineering expertise and mature manufacturing capabilities. Leveraging this foundation, BorgWarner is well positioned to develop and launch a dedicated motorcycle DCT system that helps enhance the riding experience and improve fuel economy.

This program reflects BorgWarner's evolution from a key component supplier to a system-level solution provider. Through an integrated offering that combines hardware and software, BorgWarner will support the customer's continued growth in China while helping enable its expansion into Europe, North America and other overseas markets.

About BorgWarner

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our business strategy, goals, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our dual-clutch transmission programs will not achieve its intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; the outcome of existing of any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transaction; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

California Public Employees Retirement System increased its position in shares of BorgWarner Inc. (NYSE:BWA – Free Report) by 12.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 532,927 shares of the auto parts company’s stock after acquiring an additional 58,960 shares during the period. California Public Employees Retirement System owned about 0.26% of BorgWarner worth $28,917,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Dimensional Fund Advisors LP increased its stake in BorgWarner by 1.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock worth $538,996,000 after purchasing an additional 178,853 shares during the period. AQR Capital Management LLC boosted its stake in shares of BorgWarner by 22.7% in the fourth quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock valued at $415,559,000 after purchasing an additional 1,703,576 shares during the period. State Street Corp grew its holdings in shares of BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after purchasing an additional 380,942 shares in the last quarter. LSV Asset Management increased its stake in BorgWarner by 6.7% during the 4th quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company’s stock worth $290,481,000 after buying an additional 402,887 shares during the period. Finally, Geode Capital Management LLC increased its stake in BorgWarner by 10.9% during the 4th quarter. Geode Capital Management LLC now owns 4,297,717 shares of the auto parts company’s stock worth $193,695,000 after buying an additional 423,933 shares during the period. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other news, VP Isabelle Mckenzie sold 3,500 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total value of $221,725.00. Following the transaction, the vice president owned 57,828 shares in the company, valued at approximately $3,663,403.80. This represents a 5.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Tania Wingfield sold 5,000 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the sale, the executive vice president directly owned 35,365 shares in the company, valued at $2,236,482.60. This trade represents a 12.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 67,500 shares of company stock valued at $4,310,115. 0.76% of the stock is owned by insiders.

BorgWarner Trading Up 3.2% Shares of NYSE:BWA opened at $63.60 on Wednesday. BorgWarner Inc. has a 52 week low of $34.27 and a 52 week high of $78.82. The company’s 50 day moving average is $68.03 and its two-hundred day moving average is $58.69. The company has a market cap of $13.05 billion, a PE ratio of 37.63, a P/E/G ratio of 1.32 and a beta of 1.09. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA – Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.08. The business had revenue of $3.53 billion during the quarter, compared to analysts’ expectations of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same period in the previous year, the company earned $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities analysts predict that BorgWarner Inc. will post 5.16 earnings per share for the current fiscal year.

BorgWarner Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, June 1st. BorgWarner’s dividend payout ratio is currently 40.24%.

Analysts Set New Price Targets Several research firms have commented on BWA. Morgan Stanley boosted their price target on shares of BorgWarner from $60.00 to $67.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 27th. Wolfe Research reiterated an “outperform” rating and issued a $95.00 price objective on shares of BorgWarner in a research note on Wednesday, June 3rd. TD Cowen lifted their target price on BorgWarner from $66.00 to $67.00 and gave the company a “hold” rating in a report on Thursday, May 7th. UBS Group raised BorgWarner from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Finally, Barclays upped their price target on BorgWarner from $75.00 to $83.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $74.57.

View Our Latest Analysis on BWA

BorgWarner Profile (Free Report)

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? BorgWarner (BWA - Free Report) , which belongs to the Zacks Automotive - Original Equipment industry, could be a great candidate to consider.

This auto parts supplier has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 11.64%.

For the last reported quarter, BorgWarner came out with earnings of $1.24 per share versus the Zacks Consensus Estimate of $1.16 per share, representing a surprise of 6.90%. For the previous quarter, the company was expected to post earnings of $1.16 per share and it actually produced earnings of $1.35 per share, delivering a surprise of 16.38%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for BorgWarner. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

BorgWarner currently has an Earnings ESP of +4.85%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

AUBURN HILLS, Mich., June 23, 2026 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) announces the following Webcast:

What:           BorgWarner 2026 Second Quarter Results Conference Call
When:          August 5, 2026 @ 9:30am Eastern Time
Where:         www.borgwarner.com/investors  
How:            Live over the Internet -- Simply log on to the web at the address above.

If you are unable to participate during the live webcast, the call will be archived at (www.borgwarner.com/investors)

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

WEB SITE:    http://www.borgwarner.com

SOURCE BorgWarner

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Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.5% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $5.18 per share. BWA also boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.

AUBURN HILLS, Mich., April 30, 2026 /PRNewswire/ -- On April 29, 2026, the Board of Directors of BorgWarner Inc. (NYSE: BWA) declared a quarterly cash dividend of $0.17 per share of common stock. The dividend is payable on June 15, 2026, to stockholders of record on June 1, 2026.

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

SOURCE BorgWarner

Returned $185 million to Shareholders During First Quarter 2026

Announces 12 Awards Across Portfolio to Support Long-Term Profitable Growth

, /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported first quarter results for 2026.

First Quarter Results and Business Update

BorgWarner's (the "Company") U.S. GAAP net sales increased approximately 1%, while organic net sales decreased approximately 4.2%, year-over-year compared with the first quarter of 2025. Excluding the decline in Battery Energy Systems segment sales, this performance was roughly in line with the Company's weighted light vehicle markets. The Company achieved a U.S. GAAP operating margin of 9.5% during the first quarter of 2026, or a decrease of 280 basis points, compared with the first quarter of 2025. The Company achieved an adjusted operating margin of 10.5%, or an increase of 50 basis points, compared with the first quarter of 2025. The Company's continued focus on cost controls allowed it to deliver strong performance despite a lower industry production environment. The Company returned approximately $185 million to its shareholders during the first quarter of 2026. This included the repurchase of approximately $150 million of its outstanding shares and a $35 million cash dividend payment. The Company continues to expand its data center and industrial portfolio. This now includes battery energy storage systems and bi-directional microgrid inverters. Additionally, the Company's planned 2027 turbine generator system launch is on track with B-samples being delivered to the customer. New Business Awards Across Portfolio

The Company secured multiple new business awards that are expected to support its long-term profitable growth, including the following:

Seven-year contract extension to supply eight families of engine, machine, power module, and battery management system controllers. This program starts in 2026 with a world-leading off-highway engine and machine manufacturer for large diesel engine applications. Three turbocharger program extension awards and one conquest award with a major European OEM. Production is expected to begin in phases starting in 2026 through 2029. Conquest variable turbine geometry (VTG) turbocharger and exhaust gas recirculation (EGR) cooler awards with a major European commercial vehicle OEM for on-highway use. Production is expected to begin in 2028. Dual clutch (DCT) award with a Chinese OEM for an SUV platform and a variable cam timing system (VCT) conquest award with a Japanese OEM for a hybrid program. Production is expected to begin in 2026 and 2028, respectively. Three eMotor awards with Asian OEMs, including two hybrid vehicle awards in China and one electric vehicle award in South Korea. Production is expected to begin in 2026 and 2027 in China and 2027 in South Korea. First Quarter Highlights:

U.S. GAAP net sales of $3,533 million, an increase of approximately 1% compared with the first quarter of 2025. Excluding the impact of foreign currencies, organic net sales decreased 4.2% compared with the first quarter of 2025. U.S. GAAP net earnings of $1.16 per diluted share. Excluding $0.08 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.24 per diluted share, an increase of 12% compared with the first quarter of 2025. U.S. GAAP operating income of $336 million, or 9.5% of net sales. Excluding $36 million of pretax expenses related to non-comparable items, adjusted operating income was $372 million, or 10.5% of net sales. Net cash provided by operating activities of $152 million. Free cash flow of $13 million. Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects.

Three Months Ended March 31,

2026

2025

Earnings per diluted share

$           1.16

$           0.72

Non-comparable items:

Restructuring expense

0.06

0.11

Adjustments associated with Spin-Off related balances

0.01

(0.01)

Unrealized loss on equity securities

0.01

—

Impairment charges

—

0.15

Costs to exit charging business

—

0.11

Merger and acquisition expense, net

(0.01)

0.01

Tax adjustments

0.01

0.01

Other non-comparable items

—

0.01

Adjusted earnings per diluted share

$           1.24

$           1.11

Net sales were $3,533 million for the first quarter of 2026, an increase of approximately 1% compared with the first quarter of 2025. This increase was due to stronger foreign currencies compared to the U.S. dollar, partially offset by declining market production volumes and lower Battery Energy Systems segment sales. Net earnings for the first quarter of 2026 were $242 million, or $1.16 per diluted share, compared with net earnings of $157 million, or $0.72 per diluted share for the first quarter of 2025. Adjusted net earnings per diluted share for the first quarter of 2026 were $1.24, up approximately 12% from adjusted net earnings per diluted share of $1.11 for the first quarter of 2025. Adjusted net earnings for the first quarter of 2026 excluded net non-comparable items of $(0.08) per diluted share, while adjusted net earnings for the first quarter of 2025 excluded net non-comparable items of $(0.39) per diluted share. These and other non-comparable items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to higher adjusted operating income and the impact of a lower share count as a result of 2025 and 2026 share repurchases.

Full Year 2026 Guidance Update: The Company maintained its 2026 full year guidance. At the mid-point of its 2026 guidance, BorgWarner expects to deliver another year of adjusted operating margin improvement and adjusted earnings per share growth despite the Company's expectation that its weighted light vehicle markets will be down 3% to approximately flat and a decline in the Company's Battery Energy Systems segment sales. Net sales are expected to be in the range of $14.0 billion to $14.3 billion in 2026, compared with 2025 net sales of approximately $14.3 billion. The Company's net sales guidance implies a year-over-year change in organic net sales of down 3.5% to down 1.5%. The Company's net sales guidance includes an expected year-over-year sales decline of approximately $210 million in the Company's Battery Energy Systems segment, which represents approximately a 1.5% headwind to organic growth in 2026. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $200 million primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.

U.S. GAAP operating margin is expected to be in the range of 9.7% to 9.9% in 2026. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 10.7% to 10.9%. U.S. GAAP net earnings are expected to be within the range of $4.70 to $4.87 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to increase and be in the range of $5.00 to $5.20 per diluted share. Full-year operating cash flow is expected to be in the range of $1,600 million to $1,700 million, while free cash flow is expected to be in the range of $900 million to $1,100 million.

At 9:30 a.m. ET today, a brief conference call concerning first quarter 2026 results and guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should ," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. "Risk Factors" in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

BorgWarner Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share amounts)

Three Months Ended March 31,

2026

2025

Net sales

$       3,533

$       3,515

Cost of sales

2,856

2,876

Gross profit

677

639

Gross margin

19.2 %

18.2 %

Selling, general and administrative expenses

328

315

Restructuring expense

18

31

Other operating (income) expense, net

(5)

17

Impairment charges

—

39

Operating income

336

237

Equity in affiliates' earnings, net of tax

(6)

(10)

Unrealized loss on equity securities

1

—

Interest expense, net

11

12

Other postretirement expense

2

3

Earnings before income taxes and noncontrolling interest

328

232

Provision for income taxes

73

61

Net earnings

255

171

Net earnings attributable to noncontrolling interest

13

14

Net earnings attributable to BorgWarner Inc. 

$         242

$         157

Earnings per share attributable to BorgWarner Inc. — diluted

$        1.16

$        0.72

Weighted average shares outstanding:

Basic

205.3

217.2

Diluted

208.3

218.1

BorgWarner Inc.

Net Sales by Reportable Segment (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Turbos & Thermal Technologies

$         1,433

$         1,454

Drivetrain & Morse Systems

1,422

1,361

PowerDrive Systems

587

561

Battery Energy Systems

102

150

Inter-segment eliminations

(11)

(11)

Net sales

$         3,533

$         3,515

Segment Adjusted Operating Income (Loss) (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Turbos & Thermal Technologies

$           214

$           235

Drivetrain & Morse Systems

260

243

PowerDrive Systems

(36)

(43)

Battery Energy Systems

(2)

(22)

Segment Adjusted Operating Income

436

413

Corporate, including stock-based compensation

64

61

Restructuring expense

18

31

Intangible asset amortization expense

16

17

Accelerated depreciation

2

—

Adjustments associated with Spin-Off related balances

2

(3)

Impairment charges

—

39

Costs to exit charging business

—

26

Loss on sale of businesses

—

1

Merger and acquisition expense, net

(2)

2

Other non-comparable items

—

2

Equity in affiliates' earnings, net of tax

(6)

(10)

Unrealized loss on equity securities

1

—

Interest expense, net

11

12

Other postretirement expense

2

3

Earnings before income taxes and noncontrolling interest

$           328

$           232

Provision for income taxes

73

61

Net Earnings

255

171

Net earnings attributable to noncontrolling interest

13

14

Net earnings attributable to BorgWarner Inc.

$           242

$           157

BorgWarner Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

March 31,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$         2,110

$         2,313

Receivables, net

3,088

2,962

Inventories

1,200

1,207

Prepayments and other current assets

344

313

Total current assets

6,742

6,795

Property, plant and equipment, net

3,259

3,330

Other non-current assets

3,652

3,644

Total assets

$        13,653

$        13,769

LIABILITIES AND EQUITY

Short-term debt

$              5

$              5

Accounts payable

2,058

1,996

Other current liabilities

1,102

1,281

Total current liabilities

3,165

3,282

Long-term debt

3,876

3,894

Other non-current liabilities:

970

979

Total liabilities

8,011

8,155

Total BorgWarner Inc. stockholders' equity

5,479

5,442

Noncontrolling interest

163

172

Total equity

5,642

5,614

Total liabilities and equity

$        13,653

$        13,769

BorgWarner Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

OPERATING ACTIVITIES

Net cash provided by operating activities

$           152

$             82

INVESTING ACTIVITIES

Capital expenditures, including tooling outlays

(143)

(119)

Customer advances related to capital expenditures

4

2

Proceeds from settlement of net investment hedges, net

9

12

Proceeds from asset disposals and other, net

—

11

Net cash used in investing activities

(130)

(94)

FINANCING ACTIVITIES

Payments of notes payable

—

(5)

Repayments of debt, including current portion

(2)

(346)

Payments for purchase of treasury stock

(150)

—

Payments for stock-based compensation items

(28)

(18)

Payment for business acquired, net of cash acquired

(3)

—

Dividends paid to BorgWarner stockholders

(35)

(24)

Dividends paid to noncontrolling stockholders

—

(4)

Net cash used in financing activities

(218)

(397)

Effect of exchange rate changes on cash

(7)

22

Net decrease in cash, cash equivalents and restricted cash

(203)

(387)

Cash and cash equivalents at beginning of year

2,313

2,094

Cash, cash equivalents and restricted cash at end of period

$         2,110

$         1,707

Supplemental Information (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Depreciation and tooling amortization

$           129

$           138

Intangible asset amortization

$             16

$             17

Non-GAAP Financial Measures
This press release contains information about the Company's financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures for 2026 is not intended to indicate that the Company is explicitly or implicitly providing projections on those U.S. GAAP financial measures and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors and banking institutions in their analyses of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any U.S. GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to the Company, adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted net earnings.

Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange ("FX") and net mergers, acquisitions and divestitures.

Adjusted Operating Income and Adjusted Operating Margin (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Net sales

$       3,533

$       3,515

Operating income

$         336

$         237

Operating margin

9.5 %

6.7 %

Non-comparable items:

Restructuring expense

$          18

$          31

Intangible asset amortization expense

16

17

Accelerated depreciation

2

—

Adjustments associated with Spin-Off related balances

2

(3)

Impairment charges

—

39

Costs to exit charging business

—

26

Merger and acquisition expense, net

(2)

2

Loss on sale of businesses

—

1

Other non-comparable items

—

2

Adjusted operating income

$         372

$         352

Adjusted operating margin

10.5 %

10.0 %

Free Cash Flow Reconciliation (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Net cash provided by operating activities

$           152

$             82

Capital expenditures, including tooling outlays

(143)

(119)

Customer advances related to capital expenditures

4

2

Free cash flow

$             13

$           (35)

First Quarter 2026 Organic Net Sales Change (Unaudited)

(in millions)

Q1 2025
Net Sales

FX

Organic
Net Sales
Change

Q1 2026
Net Sales

Organic
Net Sales
Change %

Turbos & Thermal Technologies        

$  1,454

$      81

$  (102)

$   1,433

(7.0) %

Drivetrain & Morse Systems

1,361

49

12

1,422

0.9 %

PowerDrive Systems

561

31

(5)

587

(0.9) %

Battery Energy Systems

150

6

(54)

102

(36.0) %

Inter-segment eliminations

(11)

—

—

(11)

— %

Net sales

$  3,515

$    167

$  (149)

$  3,533

(4.2) %

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

(in millions)

Low

High

Net sales

$     14,000

$     14,300

Operating income

$       1,361

$       1,416

Operating margin

9.7 %

9.9 %

Non-comparable items:

Restructuring expense

$          80

$          90

Intangible asset amortization

57

57

Accelerated depreciation

2

2

Adjustment associated with Spin-Off related balances

2

2

Merger and acquisition expense, net

(2)

(2)

Adjusted operating income

$       1,500

$       1,565

Adjusted operating margin

10.7 %

10.9 %

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

Low

High

Earnings per Diluted Share

$           4.70

$           4.87

Non-comparable items:

Restructuring expense

$           0.28

$           0.31

Adjustment associated with Spin-Off related balances

0.01

0.01

Unrealized loss on equity securities

0.01

0.01

Merger and acquisition expense, net

(0.01)

(0.01)

Tax adjustments

0.01

0.01

Adjusted Earnings per Diluted Share

$           5.00

$           5.20

Free Cash Flow Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

(in millions)

Low

High

Net cash provided by operating activities

$        1,600

$        1,700

Capital expenditures, including tooling outlays

(700)

(600)

Free cash flow

$          900

$        1,100

Full Year 2026 Organic Net Sales Change Guidance Reconciliation (Unaudited)

(in millions)

FY 2025 Net
Sales

FX

Battery
Energy
Systems
("BES")
Sales
Change

Organic Net
Sales
Change

FY 2026 Net
Sales

Organic Net
Sales
Change
Excluding
BES %

Organic Net
Sales
Change
Including
BES %

BorgWarner
LV
Weighted
Market %

Low

$  14,316

$      200

$    (210)

$    (306)

$  14,000

(2.1) %

(3.6) %

(3.0) %

High

$  14,316

$      200

$    (210)

$       (6)

$  14,300

— %

(1.5) %

— %

Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited)

North America

Europe

China

Total

BorgWarner
Weighted Total

Light vehicle

(3)% to 1%

(3)% to 0%

(4)% to (1.5)%

(3)% to (1)%

(3)% to 0%

SOURCE BorgWarner

New business awards support passenger car and van programs across multiple combustion engine platforms BorgWarner's broad turbocharger portfolio helps support performance, fuel economy and emissions targets The awards include both extensions of existing business and a conquest win with a long-standing European customer , /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, has secured multiple turbocharger business awards with a major European OEM for a range of passenger car and van applications. The awards, which include both extensions of existing business and a conquest win, further strengthen BorgWarner's position in combustion vehicle applications. Production is expected to begin in phases from the second quarter of 2026 through the second quarter of 2029.

BorgWarner Secures Multiple Turbocharger Awards with Major European OEM "These business wins reflect BorgWarner's strong turbocharging technology portfolio, our competitive solutions and the trust we have built with this long-standing customer," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "As the industry continues to demand highly efficient combustion solutions, BorgWarner remains committed to delivering advanced turbocharger technologies, reliable supply and strong launch execution for our customers around the world."

The awarded business includes turbocharger solutions for multiple vehicle programs spanning both gasoline and diesel applications. The portfolio includes variable turbine geometry, twin-scroll wastegate and regulated two-stage turbocharging technologies tailored to a range of engine and vehicle requirements, helping the customer meet increasingly demanding performance, fuel economy and emissions targets across a broad range of applications.

The products for these awards will be manufactured at BorgWarner's facilities in Rzeszów, Poland and Kirchheimbolanden, Germany. The programs also highlight BorgWarner's ability to combine advanced engineering with strong supply chain execution to support complex, high-volume customer launches.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our turbocharging technology will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

BorgWarner (BWA - Free Report) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.16 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.83%. A quarter ago, it was expected that this auto parts supplier would post earnings of $1.16 per share when it actually produced earnings of $1.35, delivering a surprise of +16.38%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

BorgWarner, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $3.53 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $3.52 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

BorgWarner shares have added about 27.1% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for BorgWarner?While BorgWarner has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for BorgWarner was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $3.59 billion in revenues for the coming quarter and $5.14 on $14.18 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

ChargePoint Holdings, Inc. (CHPT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026.

This company is expected to post quarterly loss of $1.11 per share in its upcoming report, which represents a year-over-year change of +7.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

ChargePoint Holdings, Inc.'s revenues are expected to be $94.86 million, down 2.9% from the year-ago quarter.

BorgWarner Inc. (BWA) Q1 2026 Earnings Call Transcript

Jackpot increases by $20,000 annually Claimed only twice since its establishment in 1995 Only six drivers have won back-to-back Indianapolis 500 races   , /PRNewswire/ -- The BorgWarner Rolling Jackpot currently stands at $40,000, awaiting the moment a driver wins the Indianapolis 500 in consecutive years to claim the prize. Following his victory in the 2025 Indianapolis 500, Alex Palou has the opportunity to earn the jackpot if he captures his second win at the 2026 Indianapolis 500, to be held Sunday, May 24, at the Indianapolis Motor Speedway.

Alex Palou has the opportunity to earn the BorgWarner Rolling Jackpot with a win at the 2026 Indianapolis 500. Established by BorgWarner in 1995, the Rolling Jackpot increases by $20,000 each year and rewards drivers who achieve the rare feat of winning the Indianapolis 500 back-to-back. The jackpot has been cashed in only twice since its inception—by Helio Castroneves in 2002 ($160,000) and Josef Newgarden in 2024 ($440,000). Since the inaugural race in 1911, only six drivers have captured consecutive victories at the legendary race, including Wilbur Shaw (1939–1940), Mauri Rose (1947–1948), Bill Vukovich (1953–1954), Al Unser (1970–1971), Castroneves, and Newgarden.

Palou, who has won the series championship for the last three consecutive years, drives for Chip Ganassi Racing and enters the 2026 Indianapolis 500 in first place in the NTT INDYCAR Series point standings after the first six races with 237 points. Palou has three wins this season and 22 career INDYCAR wins.

"The Indianapolis 500 is one of the most iconic races in motorsports, and BorgWarner is proud to continue building the excitement through the Rolling Jackpot," said Joseph Fadool, President and CEO, BorgWarner. "Alex is driving great this season with three wins and five top-5 finishes, so there's a good chance we'll meet him again this year in Victory Circle."

Beyond the Rolling Jackpot, a repeat victory would earn Palou another appearance on the iconic Borg-Warner Trophy, which features the sculpted faces of all race winners. He would also be presented with another BorgWarner Championship Driver's Trophy™, commonly known as the "Baby Borg," a miniature version of the legendary 110-pound sterling silver trophy.

If Palou does not win the 2026 Indianapolis 500, the jackpot will roll over to next year with an additional $20,000 to the total.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

The Borg-Warner Trophy, BorgWarner Championship Driver's Trophy, and BorgWarner Championship Team Owner's Trophy are trademarks of BorgWarner Inc.

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, goals, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our engine and machine controllers will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.99; value investors should take notice.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $5.16 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BWA should be on investors' short list.

On May 26, 2026, BorgWarner Inc (BWA) shares rose 3.7% today, bringing the stock price to $68.26. The price has fluctuated between a 52-week high of $70.31 and

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.79; value investors should take notice.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $5.18 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BWA should be on investors' short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.5% for the current fiscal year.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $5.18 per share. BWA boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.